Описание:
Robots are introduced into a real-business-cycle setup augmented with a detailed gov-ernment sector. Robots are modeled as an imperfect substitute for labor services. Themodel is calibrated to Bulgarian data for the period following the introduction of thecurrency board arrangement (1999-2020). The quantitative importance of the presenceof robots in the economy is investigated for business cycle fluctuations in Bulgaria. Inthe presence of robots, wages increase, but employment falls after a technology shock.However, for plausible parameter values, the effect is predicted to be quite small.